Digicel International Finance Limited’s October 12, 2023 Chapter 15 petition Dkt. 1 sought U.S. recognition of Bermuda proceedings supporting a refinancing and debt-for-equity restructuring. The Hickey declaration Dkt. 6 identified creditor votes scheduled for October 18, 2023 as the next step, with Bermuda sanction and U.S. recognition required before the schemes could become effective.

Digicel International Finance Limited sought U.S. recognition and enforcement of Bermuda restructuring proceedings through its Chapter 15 petition filed October 12, 2023 Dkt. 1. The accompanying Hickey declaration Dkt. 6 described interconditional schemes for Digicel International Finance Limited and Digicel Intermediate Holdings Limited, together with Digicel Limited, to refinance and equitize debt. These entities were non-operating holding companies within the Caribbean and Central American communications group; its business operated primarily through Digicel International Finance Limited’s subsidiaries.

The Hickey declaration’s restructuring history Dkt. 6 recounts an earlier Chapter 15 proceeding filed by Digicel Group One Limited on May 15, 2020, followed by U.S. recognition on June 17, 2020 and effectiveness of its Bermuda scheme on June 18, 2020. Despite that restructuring and the July 2022 sale of Digicel Pacific, renewed financial pressure and near-term maturities drove further negotiations. Talks initially focused on Digicel Limited’s March 1, 2023 note maturity, but worsening conditions in Haiti reduced free cash flow available for debt service and prompted a broader restructuring.

Under the June 27, 2023 restructuring support agreement described in the Hickey declaration Dkt. 6, secured noteholders would receive new secured notes, term lenders would receive obligations under an amended credit agreement, and unsecured noteholders would receive new unsecured notes issued by Digicel Midco Limited. Those creditor groups would also receive the applicable accrued cash interest. Digicel Limited noteholders and Digicel International Finance Limited subordinated noteholders would exchange their claims for common equity in Digicel Holdings (Bermuda) Limited and subscription rights. Digicel Holdings (Bermuda) Limited would become the group’s ultimate parent upon effectiveness.

The proposed liquidity component was a backstopped rights offering of up to $110 million of convertible preferred shares, accompanied by common equity, as detailed in the Hickey declaration’s scheme consideration Dkt. 6. Proceeds were intended to refinance bridge facilities and support continuing operations. The declaration reported no drawings under those bridge facilities as of October 12, 2023; the rights offering was proposed funding, rather than completed financing.

The Hickey declaration’s implementation timetable Dkt. 6 reported that the Bermuda court entered convening orders on September 22, 2023 and scheduled creditor meetings for October 18, 2023. At filing, those votes were the next material step, with a Bermuda sanction hearing expected on or about November 3, 2023 if creditors approved the schemes. Each voting class needed a majority in number representing at least 75% in value of creditors present and voting. Effectiveness required Bermuda sanction, delivery of the sanction orders to the Bermuda Registrar of Companies, U.S. recognition and satisfaction of the other scheme conditions; the requested recognition would make the restructuring enforceable in the United States.

Digicel International Finance Limited’s October 12, 2023 Chapter 15 petition Dkt. 1 sought U.S. recognition of Bermuda proceedings supporting a refinancing and debt-for-equity restructuring. The Hickey declaration Dkt. 6 identified creditor votes scheduled for October 18, 2023 as the next step, with Bermuda sanction and U.S. recognition required before the schemes could become effective.

Digicel International Finance Limited sought U.S. recognition and enforcement of Bermuda restructuring proceedings through its Chapter 15 petition filed October 12, 2023 Dkt. 1. The accompanying Hickey declaration Dkt. 6 described interconditional schemes for Digicel International Finance Limited and Digicel Intermediate Holdings Limited, together with Digicel Limited, to refinance and equitize debt. These entities were non-operating holding companies within the Caribbean and Central American communications group; its business operated primarily through Digicel International Finance Limited’s subsidiaries.

The Hickey declaration’s restructuring history Dkt. 6 recounts an earlier Chapter 15 proceeding filed by Digicel Group One Limited on May 15, 2020, followed by U.S. recognition on June 17, 2020 and effectiveness of its Bermuda scheme on June 18, 2020. Despite that restructuring and the July 2022 sale of Digicel Pacific, renewed financial pressure and near-term maturities drove further negotiations. Talks initially focused on Digicel Limited’s March 1, 2023 note maturity, but worsening conditions in Haiti reduced free cash flow available for debt service and prompted a broader restructuring.

Under the June 27, 2023 restructuring support agreement described in the Hickey declaration Dkt. 6, secured noteholders would receive new secured notes, term lenders would receive obligations under an amended credit agreement, and unsecured noteholders would receive new unsecured notes issued by Digicel Midco Limited. Those creditor groups would also receive the applicable accrued cash interest. Digicel Limited noteholders and Digicel International Finance Limited subordinated noteholders would exchange their claims for common equity in Digicel Holdings (Bermuda) Limited and subscription rights. Digicel Holdings (Bermuda) Limited would become the group’s ultimate parent upon effectiveness.

The proposed liquidity component was a backstopped rights offering of up to $110 million of convertible preferred shares, accompanied by common equity, as detailed in the Hickey declaration’s scheme consideration Dkt. 6. Proceeds were intended to refinance bridge facilities and support continuing operations. The declaration reported no drawings under those bridge facilities as of October 12, 2023; the rights offering was proposed funding, rather than completed financing.

The Hickey declaration’s implementation timetable Dkt. 6 reported that the Bermuda court entered convening orders on September 22, 2023 and scheduled creditor meetings for October 18, 2023. At filing, those votes were the next material step, with a Bermuda sanction hearing expected on or about November 3, 2023 if creditors approved the schemes. Each voting class needed a majority in number representing at least 75% in value of creditors present and voting. Effectiveness required Bermuda sanction, delivery of the sanction orders to the Bermuda Registrar of Companies, U.S. recognition and satisfaction of the other scheme conditions; the requested recognition would make the restructuring enforceable in the United States.